Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month:

Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 450,000 units) $4,491,000 Master Budget (based on budgeted orders for 480,000 units) $4,320,000 Sales revenue Less Variable costs Materials Direct labor Variable overhead Variable marketing and administrative 1,680,000 252,000 626,800 419,000 $2,977,800 $1,513,200 1,680,000 312,000 576,000 432,000 $3,000,000 $1,320,000 Total variable costs Contribution margin Less Fixed costs Manufacturing overhead Marketing Administrative 628,900 175,000 135,000 S 938,900 $ 574,300 600,000 175,000 115,000 S 890,000 S 430,000 Total fixed costs Operating profits